Updated: Mar 9, 2020
The CIPC issues a Notice in August 2019 stating that a mandatory Compliance Checklist will be launched, requiring that ONLY Company required to submit Audited/Reviewed Financial Statements, must complete and submit it before submitting their CIPC Annual Returns.
The CIPC Compliance Checklist refers to 24 different sections of the Companies Act (No. 71 of 2008), requesting the representative of the Company to confirm whether the Company complied with each relevant section during the previous calendar year.
Much concern was raised about this in the Financial Industry early 2020, stating that this will again increase the cost of compliance for already struggling business market, and furthermore, trying to understand the requirements of each section will require the involvement of Companies Act specialists. The sections are as follows:
Section 4 Solvency and Liquidity Test
Section 15 Memorandum of Incorporation (MOI), Shareholder Agreements and Company Rules
Section 26 Access to company records
Section 27 Financial year end
Section 28 Accounting Records
Section 29 Annual Financial Statements
Section 30 Annual Financial Statements
Section 32 Use of Company name and company registration number
Section 33 Filing of annual return
Section 44 Financial assistance for subscription of securities
Section 45 Loans and other financial assistance to directors
Section 50 Securities register and numbering
Section 61 Shareholders meetings
Section 66 Election and appointment of directors and prescribed officers
Section 69 Ineligibility and disqualification of directors and prescribed officers
Section 70 Vacancies on board
Section 71 Removal of directors
Section 86 Mandatory appointment of company secretary
Section 90 Appointment of auditor
Section 92 Rotation of auditors
Section 94 Audit committees
Reg 21 Registered office of a company
Reg 43 Social and Ethics Committee
Schedule 1 Provisions concerning non-profit companies (NPC`s)
Incorrect information supplied to CIPC whilst completing this CIPC Compliance Checklist and/or non-compliance by the Company regarding the applicable legislation, may result in CIPC imposing penalties and/or imprisonment.
In light of the above, we, The Supremacy Group, decided to offer the best possible solution to this problem. Our Legal Team spent weeks on end to develop the innovative CIPC Compliance Checklist Tool. This Tool is a user-friendly Online Solution, allowing you to complete it yourself or forward it to your client for completion. We went above-and-beyond to ensure that we simplify the questions (without loosing its legislative meaning), so that anyone can easily understand whilst completing it.
How does it work?
All that is required is the completion of the Tool’s smart form (i.e. it generates applicable questions depending on the answer provided), where after it will calculate whether the Company was compliant per required Companies Act section. Once submitted, the system will generate an Outcome Report – showing you exactly what you answer should be per section (i.e. Yes / No / NA) when completing the CIPC Compliance Checklist on the CIPC platform.
It gets even better – the Tool is based on a secured Cloud Platform, so no need to purchase and install any expensive software (putting your practice ahead of the rest for the 4th Industrial Revolution). Furthermore, the Tool has a built in Audit Trail (which gets emailed afterwards) and a declaration confirming accuracy by the person completing the Tool, essentially limiting your (as the CIPC Annual Return and Checklist preparer) liability to CIPC.
How to get it?
No contracts or license fees applicable, you only pay R250 (incl. VAT) per submission (click here to buy). Simply purchase your submission credits at our online store (bulk discounted orders allowed upon request), then our Company Secretarial Consultants will forward your unique link to the Online Form. Should you want your firm’s own branding on the Tool, simply submit us a request and we can add this for a once-off fee.
Should you want to see a live demonstration of this Tool, then please register to join our upcoming free Webinar by clicking here.